Cover Page
Cover Page - shares | 6 Months Ended | |
Dec. 31, 2023 | Jan. 18, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 1-07151 | |
Entity Registrant Name | THE CLOROX COMPANY | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 31-0595760 | |
Entity Address, Address Line One | 1221 Broadway | |
Entity Address, City or Town | Oakland | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94612-1888 | |
City Area Code | 510 | |
Local Phone Number | 271-7000 | |
Title of 12(b) Security | Common Stock - $1.00 par value | |
Trading Symbol | CLX | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 124,106,333 | |
Entity Central Index Key | 0000021076 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2024 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings and Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,990 | $ 1,715 | $ 3,376 | $ 3,455 |
Cost of products sold | 1,124 | 1,095 | 1,978 | 2,209 |
Gross profit | 866 | 620 | 1,398 | 1,246 |
Selling and administrative expenses | 322 | 282 | 598 | 543 |
Advertising costs | 186 | 156 | 351 | 317 |
Research and development costs | 32 | 33 | 61 | 65 |
Pension settlement charge | 171 | 0 | 171 | 0 |
Interest expense | 26 | 23 | 47 | 45 |
Other (income) expense, net | (7) | (4) | 5 | 30 |
Earnings before income taxes | 136 | 130 | 165 | 246 |
Income tax expense | 40 | 28 | 44 | 57 |
Net earnings | 96 | 102 | 121 | 189 |
Less: Net earnings attributable to noncontrolling interests | 3 | 3 | 6 | 5 |
Net earnings attributable to Clorox | $ 93 | $ 99 | $ 115 | $ 184 |
Net earnings per share attributable to Clorox | ||||
Basic net earnings per share (in dollars per share) | $ 0.75 | $ 0.81 | $ 0.93 | $ 1.49 |
Diluted net earnings per share (in dollars per share) | $ 0.75 | $ 0.80 | $ 0.92 | $ 1.49 |
Weighted average shares outstanding (in thousands) | ||||
Basic (in shares) | 124,176 | 123,546 | 124,075 | 123,443 |
Diluted (in shares) | 124,620 | 123,988 | 124,635 | 123,951 |
Comprehensive income | $ 231 | $ 115 | $ 255 | $ 166 |
Less: Total comprehensive income attributable to noncontrolling interests | 3 | 3 | 6 | 5 |
Total comprehensive income attributable to Clorox | $ 228 | $ 112 | $ 249 | $ 161 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2023 | Jun. 30, 2023 |
Current assets | ||
Cash and cash equivalents | $ 355 | $ 367 |
Receivables, net | 679 | 688 |
Inventories, net | 655 | 696 |
Prepaid expenses and other current assets | 115 | 77 |
Total current assets | 1,804 | 1,828 |
Property, plant and equipment, net of accumulated depreciation and amortization of $2,792 and $2,705, respectively | 1,314 | 1,345 |
Operating lease right-of-use assets | 354 | 346 |
Goodwill | 1,252 | 1,252 |
Trademarks, net | 542 | 543 |
Other intangible assets, net | 156 | 169 |
Other assets | 486 | 462 |
Total assets | 5,908 | 5,945 |
Current liabilities | ||
Notes and loans payable | 247 | 50 |
Current operating lease liabilities | 92 | 87 |
Accounts payable and accrued liabilities | 1,649 | 1,659 |
Income taxes payable | 34 | 121 |
Total current liabilities | 2,022 | 1,917 |
Long-term debt | 2,479 | 2,477 |
Long-term operating lease liabilities | 311 | 310 |
Other liabilities | 852 | 825 |
Deferred income taxes | 26 | 28 |
Total liabilities | 5,690 | 5,557 |
Commitments and contingencies | ||
Stockholders’ equity | ||
Preferred stock: $1.00 par value; 5,000,000 shares authorized; none issued or outstanding | 0 | 0 |
Common stock: $1.00 par value; 750,000,000 shares authorized; 130,741,461 shares issued as of December 31, 2023 and June 30, 2023; and 124,080,634 and 123,820,022 shares outstanding as of December 31, 2023 and June 30, 2023, respectively | 131 | 131 |
Additional paid-in capital | 1,245 | 1,245 |
Retained earnings | 241 | 583 |
Treasury stock, at cost: 6,660,827 and 6,921,439 shares as of December 31, 2023 and June 30, 2023, respectively | (1,205) | (1,246) |
Accumulated other comprehensive net (loss) income | (359) | (493) |
Total Clorox stockholders’ equity | 53 | 220 |
Noncontrolling interests | 165 | 168 |
Total stockholders’ equity | 218 | 388 |
Total liabilities and stockholders’ equity | $ 5,908 | $ 5,945 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2023 | Jun. 30, 2023 |
Statement of Financial Position [Abstract] | ||
Property, plant and equipment, accumulated depreciation and amortization | $ 2,792 | $ 2,705 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 750,000,000 | 750,000,000 |
Common stock, shares issued (in shares) | 130,741,461 | 130,741,461 |
Common stock, shares outstanding (in shares) | 124,080,634 | 123,820,022 |
Treasury stock (in shares) | 6,660,827 | 6,921,439 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Operating activities: | ||
Net earnings | $ 121 | $ 189 |
Adjustments to reconcile net earnings to net cash provided by operations: | ||
Depreciation and amortization | 118 | 114 |
Stock-based compensation | 29 | 31 |
Deferred income taxes | (60) | (8) |
Pension settlement charge | 171 | 0 |
Other | 8 | 37 |
Changes in: | ||
Receivables, net | 15 | 78 |
Inventories, net | 43 | 9 |
Prepaid expenses and other current assets | (20) | (23) |
Accounts payable and accrued liabilities | (163) | (54) |
Operating lease right-of-use assets and liabilities, net | 0 | 0 |
Income taxes payable / prepaid | (89) | 14 |
Net cash provided by operations | 173 | 387 |
Investing activities: | ||
Capital expenditures | (76) | (88) |
Other | 20 | 1 |
Net cash used for investing activities | (56) | (87) |
Financing activities: | ||
Notes and loans payable, net | 195 | (28) |
Cash dividends paid to Clorox stockholders | (298) | (291) |
Issuance of common stock for employee stock plans and other | (1) | 4 |
Net cash used for financing activities | (104) | (315) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (23) | (1) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (10) | (16) |
Cash, cash equivalents and restricted cash: | ||
Beginning of period | 368 | 186 |
End of period | $ 358 | $ 170 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The unaudited interim condensed consolidated financial statements for the three and six months ended December 31, 2023 and 2022, in the opinion of management, reflect all normal and recurring adjustments considered necessary for a fair presentation of the consolidated results of operations, financial position and cash flows of The Clorox Company and its controlled subsidiaries (the Company or Clorox) for the periods presented. However, the financial results for interim periods are not necessarily indicative of the results that may be expected for a full fiscal year or for any other future period. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP) have been omitted or condensed pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). The information in this report should be read in conjunction with the Company’s Annual Report on Form 10-K filed with the SEC for the fiscal year ended June 30, 2023, which includes a complete set of footnote disclosures, including the Company’s significant accounting policies. Recently Issued Accounting Standards Recently Issued Accounting Standards Not Yet Adopted In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” These amendments primarily require enhanced disclosures and disaggregation of income tax information by jurisdiction in the annual income tax reconciliation and quantitative and qualitative disclosures regarding income taxes paid. These amendments are to be applied prospectively, with the option to apply the standard retrospectively, for annual periods beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of this guidance will have on the Company’s disclosures. In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” These amendments primarily require enhanced disclosures about significant segment expenses regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss. The ASU also requires all annual disclosures currently required by Topic 280 to be included in interim periods. These amendments are to be applied retrospectively for all periods presented in the financial statements and are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact that the adoption of this guidance will have on the Company’s disclosures. Recently Adopted Accounting Standards In September 2022, the FASB issued ASU No. 2022-04, "Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations.” These amendments require disclosure of the key terms of outstanding supplier finance programs and a rollforward of the related obligations. These amendments are effective for fiscal years beginning after December 15, 2022, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. The Company adopted the standard as of July 1, 2023. The adoption relates to disclosures only and does not have an impact on the condensed consolidated financial statements, results of operations, or cash flows. |
CYBERATTACK
CYBERATTACK | 6 Months Ended |
Dec. 31, 2023 | |
Unusual or Infrequent Items, or Both [Abstract] | |
CYBERATTACK | CYBERATTACK On Monday, August 14, 2023, the Company disclosed it had identified unauthorized activity on some of its Information Technology (IT) systems. That activity began on Friday, August 11, 2023 and after becoming aware of it that evening, the Company immediately began taking steps to stop and remediate the activity. The Company also took certain systems offline and engaged third-party cybersecurity experts to support its investigation and recovery efforts. The Company implemented its business continuity plans, including manual ordering and processing procedures at a reduced rate of operations in order to continue servicing its customers. However, the incident resulted in wide-scale disruptions to the Company’s business operations throughout the remainder of the quarter ended September 30, 2023. The impacts of these system disruptions included order processing delays and significant product outages, resulting in a negative impact on net sales and earnings. The Company has since transitioned back to automated order processing. The Company experienced lessening operational impacts in the second quarter as it made progress in returning to normalized operations. The Company also incurred incremental expenses of approx imately $25 and $49 as a result of the cyberattack for the three and six months ended December 31, 2023, respectively. The following table summarizes the recognition of costs in the condensed consolidated statements of earnings and comprehensive income: Three months ended Six months ended 12/31/2023 12/31/2023 Costs of products sold $ 9 $ 20 Selling and administrative expenses 16 29 Total $ 25 $ 49 The costs incurred relate primarily to third-party consulting services, including IT recovery and forensic experts and other professional services incurred to investigate and remediate the attack, as well as incremental operating costs incurred from the resulting disruption to the Company’s business operations. The Company expects to incur lessening costs related to the cyberattack in future periods. The Company has not recognized any insurance proceeds in the three and six months ended December 31, 2023 related to the cyberattack. The timing of recognizing insurance recoveries, if any, may differ from the timing of recognizing the associated expenses. |
SUPPLY CHAIN FINANCING PROGRAM
SUPPLY CHAIN FINANCING PROGRAM | 6 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
SUPPLY CHAIN FINANCING PROGRAM | SUPPLY CHAIN FINANCING PROGRAM The Company has arranged for a global financial institution to offer a voluntary supply chain finance (SCF) program for the benefit of the Company’s suppliers. The Company’s current payment terms do not exceed 120 days in keeping with industry standards. The SCF program enables suppliers to directly contract with the financial institution to receive payment from the financial institution prior to the payment terms between the Company and the supplier by selling the Company’s payables to the financial institution. Participation in the program is at the sole discretion of the supplier and the Company has no economic interest in a supplier's decision to enter into the agreement and has no direct financial relationship with the financial institution, as it relates to the SCF program. Once a supplier elects to participate in the SCF program and reaches an agreement with the financial institution, the supplier elects which individual Company invoices to sell to the financial institution. The terms of the Company’s payment obligations are not impacted by a supplier’s participation in the program and as such, the SCF program has no direct impact on the Company’s balance sheets, cash flows or liquidity. The Company has not pledged any assets as security or provided guarantees under the SCF program. Accounts payable and accrued liabilities |
RESTRUCTURING AND RELATED COSTS
RESTRUCTURING AND RELATED COSTS | 6 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING AND RELATED COSTS | RESTRUCTURING AND RELATED COSTS In the first quarter of fiscal year 2023, the Company began recognizing costs related to a plan that involves streamlining its operating model to meet its objectives of driving growth and productivity. The streamlined operating model is expected to enhance the Company’s ability to respond more quickly to changing consumer behaviors and innovate faster. The Company anticipates the implementation of this new model will be completed in fiscal year 2024, with different phases occurring throughout the implementation period. The Company incurred $60 of costs in fiscal year 2023 and anticipates incurring approximately $30 to $40 of costs in fiscal year 2024 related to this initiative, of which approximately $5 to $10 are expected to be employee-related costs to reduce certain staffing levels such as severance payments, with the remainder for consulting and other costs. Costs incurred are expected to be settled primarily in cash. The total restructuring and related implementation costs, net associated with the Company’s streamlined operating model as reflected in the condensed consolidated statements of earnings and comprehensive income: Three months ended Six months ended Inception to date ended 12/31/2023 12/31/2022 12/31/2023 12/31/2022 12/31/2023 Costs of products sold $ — $ — $ — $ (1) $ (3) Selling and administrative expenses 3 4 3 5 15 Research and development — — — — (1) Other (income) expense, net: Employee-related costs — — — 19 52 Total, net $ 3 $ 4 $ 3 $ 23 $ 63 Employee-related costs primarily include severance and other termination benefits calculated based on salary levels, prior service and statutory requirements. Other costs primarily include consulting fees incurred for the organizational design and implementation of the streamlined operating model, related processes and other professional fees incurred. The Company may, from time to time, decide to pursue additional restructuring-related initiatives that involve costs in future periods. The following table reconciles the accrual for the streamlined operating model’s restructuring and related implementation costs discussed above, which are recorded within Accounts payable and accrued liabilities in the condensed consolidated balance sheets: Employee-Related Costs Other Total Accrual Balance as of June 30, 2023 $ 23 $ 5 $ 28 Charges — 3 3 Cash payments (17) (6) (23) Accrual Balance as of December 31, 2023 $ 6 $ 2 $ 8 |
INVENTORIES, NET
INVENTORIES, NET | 6 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORIES, NET | INVENTORIES, NET Inventories, net consisted of the following as of: 12/31/2023 6/30/2023 Finished goods $ 562 $ 595 Raw materials and packaging 188 182 Work in process 11 8 LIFO allowances (104) (87) Total inventories, net $ 657 $ 698 Less: Non-current inventories, net (1) 2 2 Total current inventories, net $ 655 $ 696 (1) Non-current inventories, net are recorded in Other assets. |
FINANCIAL INSTRUMENTS AND FAIR
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | 6 Months Ended |
Dec. 31, 2023 | |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS [Abstract] | |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS Financial Risk Management and Derivative Instruments The Company is exposed to certain commodity, foreign currency and interest rate risks related to its ongoing business operations and uses derivative instruments to mitigate its exposure to these risks. Commodity Price Risk Management The Company may use commodity futures, options and swap contracts to limit the impact of price volatility on a portion of its forecasted raw material requirements. These commodity derivatives may be exchange traded or over-the-counter contracts and generally have original contractual maturities of less than 2 years. Commodity purchase and options contracts are measured at fair value using market quotations obtained from the Chicago Board of Trade commodity futures exchange and commodity derivative dealers. For both December 31, 2023, and June 30, 2023, the notional amount of commodity derivatives was $41 respectively, which related primarily to exposures in soybean oil used for the Food business and jet fuel used for the Grilling business. Foreign Currency Risk Management The Company may also enter into certain over-the-counter derivative contracts to manage a portion of the Company’s forecasted foreign currency exposure associated with the purchase of inventory. These foreign currency contracts generally have original contractual maturities of less than 2 years. The foreign exchange contracts are measured at fair value using information quoted by foreign exchange dealers. The notional amounts of outstanding foreign currency forward contracts used by the Company’s subsidiaries to hedge forecasted purchases of inventory were $45 and $51 as of December 31, 2023 and June 30, 2023, respectively. Interest Rate Risk Management The Company may enter into over-the-counter interest rate contracts to fix a portion of the benchmark interest rate prior to the anticipated issuance of fixed rate debt. These interest rate contracts generally have original contractual maturities of less than 3 years. The interest rate contracts are measured at fair value using information quoted by bond dealers. The Company held no interest rate contracts as of both December 31, 2023 and June 30, 2023. Commodity, Foreign Exchange and Interest Rate Derivatives The Company designates its commodity forward, futures and options contracts for forecasted purchases of raw materials, foreign currency forward contracts for forecasted purchases of inventory and interest rate contracts for forecasted interest payments as cash flow hedges. The effects of derivative instruments designated as hedging instruments on Other comprehensive (loss) income and Net earnings were as follows: Gains (losses) recognized in Other comprehensive (loss) income Three months ended Six months ended 12/31/2023 12/31/2022 12/31/2023 12/31/2022 Commodity purchase derivative contracts $ (4) $ 1 $ (5) $ (2) Foreign exchange derivative contracts (2) (1) (1) — Interest rate derivative contracts — — — — Total $ (6) $ — $ (6) $ (2) Location of gains (losses) reclassified from Accumulated other comprehensive net (loss) income into Net earnings Gains (losses) reclassified from Accumulated other comprehensive net (loss) income and recognized in Net earnings Three months ended Six months ended 12/31/2023 12/31/2022 12/31/2023 12/31/2022 Commodity purchase derivative contracts Cost of products sold $ — $ 3 $ (2) $ 7 Foreign exchange derivative contracts Cost of products sold — — — 1 Interest rate derivative contracts Interest expense 3 3 6 6 Total $ 3 $ 6 $ 4 $ 14 The estimated amount of the existing net gain (loss) in Accumulated other comprehensive net (loss) income as of December 31, 2023 that is expected to be reclassified into Net earnings within the next twelve months is $8. Counterparty Risk Management and Derivative Contract Requirements The Company utilizes a variety of financial institutions as counterparties for over-the-counter derivative instruments. The Company enters into agreements governing the use of over-the-counter derivative instruments and sets internal limits on the aggregate over-the-counter derivative instrument positions held with each counterparty. Certain terms of these agreements require the Company or the counterparty to post collateral when the fair value of the derivative instruments exceeds contractually defined counterparty liability position limits. Of the over-the-counter derivative instruments in liability positions, $1 contained such terms as of both December 31, 2023 and June 30, 2023. As of both December 31, 2023 and June 30, 2023, neither the Company nor any counterparty was required to post any collateral as no counterparty liability position limits were exceeded. Certain terms of the agreements governing the Company’s over-the-counter derivative instruments require the Company’s credit ratings, as assigned by Standard & Poor’s and Moody’s to the Company and its counterparties, to remain at a level equal to or better than the minimum of an investment grade credit rating. If the Company’s credit ratings were to fall below investment grade, the counterparties to the derivative instruments could request full collateralization on derivative instruments in net liability positions. As of both December 31, 2023 and June 30, 2023, the Company and each of its counterparties had been assigned investment grade ratings by both Standard & Poor’s and Moody’s. Certain of the Company’s exchange traded futures and options contracts used for commodity price risk management include requirements for the Company to post collateral in the form of a cash margin account held by the Company’s broker for trades conducted on that exchange. As of December 31, 2023 and June 30, 2023, the Company maintained cash margin balances related to exchange traded futures and options contracts of $2 and $0, respectively, which are classified as Prepaid expenses and other current assets on the condensed consolidated balance sheets. Trust Assets The Company holds interests in mutual funds and cash equivalents as part of trust assets related to its nonqualified deferred compensation plans. The participants in the nonqualified deferred compensation plans, who are the Company’s current and former employees, may select among certain mutual funds in which their compensation deferrals are invested in accordance with the terms of the plans and within the confines of the trusts, which hold the marketable securities. The trusts represent variable interest entities for which the Company is considered the primary beneficiary, and therefore trust assets are consolidated and included in Other assets in the condensed consolidated balance sheets. The gains and losses on the trust assets are recorded in Other (income) expense, net in the condensed consolidated statements of earnings. The interests in mutual funds are measured at fair value using quoted market prices. The Company has designated these marketable securities as trading investments. Fair Value of Financial Instruments Financial assets and liabilities measured at fair value on a recurring basis in the condensed consolidated balance sheets are required to be classified and disclosed in one of the following three categories of the fair value hierarchy: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs reflecting the reporting entity’s own assumptions. As of both December 31, 2023 and June 30, 2023, the Company’s financial assets and liabilities that were measured at fair value on a recurring basis during the period included derivative financial instruments, which were classified as either Level 1 or Level 2, and trust assets to fund the Company’s nonqualified deferred compensation plans, which were classified as Level 1. All of the Company’s derivative instruments qualify for hedge accounting. The following table provides information about the balance sheet classification and the fair values of the Company’s derivative instruments: 12/31/2023 6/30/2023 Balance sheet Fair value Carrying Estimated Carrying Estimated Assets Commodity purchase options contracts Prepaid expenses and other current assets 1 — — 2 2 $ — $ — $ 2 $ 2 Liabilities Commodity purchase futures contracts Accounts payable and accrued liabilities 1 — — — — Commodity purchase swaps contracts Accounts payable and accrued liabilities 2 — — 1 1 Foreign exchange forward contract Accounts payable and accrued liabilities 2 1 1 — — $ 1 $ 1 $ 1 $ 1 The following table provides information about the balance sheet classification and the fair values of the Company’s other assets and liabilities for which disclosure of fair value is required: 12/31/2023 6/30/2023 Balance sheet Fair value Carrying Estimated Carrying Estimated Assets Interest-bearing investments, including money market funds Cash and cash equivalents (1) 1 $ 215 $ 215 $ 243 $ 243 Time deposits Cash and cash equivalents (1) 2 8 8 9 9 Trust assets for nonqualified deferred compensation plans Other assets 1 150 150 129 129 $ 373 $ 373 $ 381 $ 381 Liabilities Notes and loans payable Notes and loans payable (2) 2 $ 247 $ 247 $ 50 $ 50 Current maturities of long-term debt and Long-term debt Current maturities of long- term debt and Long-term debt (3) 2 2,479 2,376 2,477 2,327 $ 2,726 $ 2,623 $ 2,527 $ 2,377 (1) Cash and cash equivalents are composed of time deposits and other interest-bearing investments, including money market funds with original maturity dates of 90 days or less. Cash and cash equivalents are recorded at cost, which approximates fair value. (2) Notes and loans payable are composed of outstanding U.S. commercial paper balances and/or amounts drawn on the Company’s credit agreements, all of which are recorded at cost, which approximates fair value. (3) Current maturities of long-term debt and Long-term debt are recorded at cost. The fair value of Long-term debt, including current maturities, was determined using secondary market prices quoted by corporate bond dealers, and is classified as Level 2. |
OTHER (INCOME) EXPENSE, NET
OTHER (INCOME) EXPENSE, NET | 6 Months Ended |
Dec. 31, 2023 | |
Other Income and Expenses [Abstract] | |
OTHER (INCOME) EXPENSE, NET | OTHER (INCOME) EXPENSE, NET The major components of Other (income) expense, net were: Three months ended Six months ended 12/31/2023 12/31/2022 12/31/2023 12/31/2022 Amortization of trademarks and other intangible assets $ 7 $ 7 $ 15 $ 14 Trust investment (gains) losses, net (12) (6) (10) (1) Net periodic benefit cost 5 4 10 8 Foreign exchange transaction (gains) losses, net (1) 15 1 23 3 Income from equity investees (1) (1) (2) (2) Interest income (7) (3) (17) (5) Restructuring costs (2) — — — 19 Gain on sale-leaseback transaction (3) (16) — (16) — Other 2 (6) 2 (6) Total $ (7) $ (4) $ 5 $ 30 (1) Foreign exchange losses are primarily related to the Company’s operations in Argentina. (2) Restructuring costs related to the implementation of the Company's streamlined operating model. See Note 4 for additional details. (3) On December 14, 2023, the Company completed an asset sale-leaseback transaction on a warehouse in Fairfield, California. The Company received proceeds of $19, net of selling costs, the asset had a carrying value of $3, and the transaction resulted in a $16 gain which was recognized in Other (income) expense, net in the Health and Wellness segment. The leaseback is accounted for as an operating lease. The term of the lease is 8 years, with options to extend the lease for two 5 year periods. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES In determining its quarterly provision for income taxes, the Company uses an estimated annual effective tax rate, which is based on expected annual income, statutory tax rates and tax planning opportunities available in the various jurisdictions in which the Company operates. Certain significant or unusual items are separately recognized in the quarter in which they occur and can be a source of variability in the effective tax rates from quarter to quarter. The effective tax rate on earnings was 29.3% and 26.7% for the three and six months ended December 31, 2023, respectively, and 21.2% and 23.0% for the three and six months ended December 31, 2022, respectively. The higher tax rates on earnings in both the three and six month periods was primarily driven by nonrecurring tax credits in the prior period, and lower compensation deductions and higher foreign income taxes in the current period. Income taxes paid, net of refunds, were $194 and $50 for the six months ended December 31, 2023 and December 31, 2022, respectively. The increase in payments in the current period was primarily driven by payment of fiscal year 2023 income taxes previously deferred as a result of the relief provided by the IRS announced in January 2023 due to winter storms in California. |
NET EARNINGS PER SHARE (EPS)
NET EARNINGS PER SHARE (EPS) | 6 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
NET EARNINGS PER SHARE (EPS) | NET EARNINGS PER SHARE (EPS) The following is the reconciliation of the weighted average number of shares outstanding (in thousands) used to calculate basic net EPS to those used to calculate diluted net EPS: Three months ended Six months ended 12/31/2023 12/31/2022 12/31/2023 12/31/2022 Basic 124,176 123,546 124,075 123,443 Dilutive effect of stock options and other 444 442 560 508 Diluted 124,620 123,988 124,635 123,951 Antidilutive stock options and other 3,527 2,942 3,527 2,963 Basic net earnings per share and Diluted net earnings per share are calculated on Net earnings attributable to Clorox. |
COMPREHENSIVE INCOME
COMPREHENSIVE INCOME | 6 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
COMPREHENSIVE INCOME | COMPREHENSIVE INCOME The following table provides a summary of Comprehensive income for the periods indicated: Three months ended Six months ended 12/31/2023 12/31/2022 12/31/2023 12/31/2022 Net earnings $ 96 $ 102 $ 121 $ 189 Other comprehensive (loss) income, net of tax: Foreign currency translation adjustments 17 18 6 (11) Net unrealized gains (losses) on derivatives (8) (6) (9) (14) Pension and postretirement benefit adjustments 126 1 137 2 Total other comprehensive (loss) income, net of tax 135 13 134 (23) Comprehensive income 231 115 255 166 Less: Total comprehensive income attributable to noncontrolling interests 3 3 6 5 Total comprehensive income attributable to Clorox $ 228 $ 112 $ 249 $ 161 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 6 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS ’ EQUITY Changes in the components of Stockholders’ equity were as follows for the periods indicated: Three months ended December 31 (Dollars in millions except per share data; shares in thousands) Common stock Additional paid-in capital Retained earnings Treasury stock Accumulated Noncontrolling interests Total stockholders’ equity Amount Shares Amount Shares Balance as of September 30, 2022 $ 131 130,741 $ 1,193 $ 832 $ (1,315) (7,385) $ (515) $ 170 $ 496 Net earnings — — — 99 — — — 3 102 Other comprehensive (loss) income — — — — — — 13 — 13 Dividends to Clorox stockholders ($1.18 per share declared) — — — (147) — — — — (147) Dividends to noncontrolling interests — — — — — — — (3) (3) Stock-based compensation — — 21 — — — — — 21 Other employee stock plan activities — — (7) (2) 18 122 — — 9 Balance as of December 31, 2022 $ 131 130,741 $ 1,207 $ 782 $ (1,297) (7,263) $ (502) $ 170 $ 491 Balance as of September 30, 2023 $ 131 130,741 $ 1,246 $ 299 $ (1,219) (6,740) $ (494) $ 168 $ 131 Net earnings (losses) — — — 93 — — — 3 96 Other comprehensive (loss) income — — — — — — 135 — 135 Dividends to Clorox stockholders ($1.20 per share declared) — — — (150) — — — — (150) Dividends to noncontrolling interests — — — — — — — (6) (6) Stock-based compensation — — 16 — — — — — 16 Other employee stock plan activities — — (17) (1) 14 79 — — (4) Balance as of December 31, 2023 $ 131 130,741 $ 1,245 $ 241 $ (1,205) (6,661) $ (359) $ 165 $ 218 Six months ended December 31 (Dollars in millions except per share data; shares in thousands) Common stock Additional paid-in capital Retained earnings Treasury stock Accumulated other comprehensive net (loss) income Noncontrolling interests Total stockholders’ equity Amount Shares Amount Shares Balance as of June 30, 2022 $ 131 130,741 $ 1,202 $ 1,048 $ (1,346) (7,589) $ (479) $ 173 $ 729 Net earnings — — — 184 — — — 5 189 Other comprehensive (loss) income — — — — — — (23) — (23) Dividends to Clorox stockholders ($3.54 per share declared) — — — (440) — — — — (440) Dividends to noncontrolling interests — — — — — — — (8) (8) Stock-based compensation — — 31 — — — — — 31 Other employee stock plan activities — — (26) (10) 49 326 — — 13 Balance as of December 31, 2022 $ 131 130,741 $ 1,207 $ 782 $ (1,297) (7,263) $ (502) $ 170 $ 491 Balance as of June 30, 2023 $ 131 130,741 $ 1,245 $ 583 $ (1,246) (6,921) $ (493) $ 168 $ 388 Net earnings (losses) — — — 115 — — — 6 121 Other comprehensive (loss) income — — — — — — 134 — 134 Dividends to Clorox stockholders ($3.60 per share declared) — — — (450) — — — — (450) Dividends to noncontrolling interests — — — — — — — (9) (9) Stock-based compensation — — 29 — — — — — 29 Other employee stock plan activities — — (29) (7) 41 260 — — 5 Balance as of December 31, 2023 $ 131 130,741 $ 1,245 $ 241 $ (1,205) (6,661) $ (359) $ 165 $ 218 Changes in Accumulated other comprehensive net (loss) income attributable to Clorox by component were as follows for the periods indicated: Three months ended December 31 Foreign currency translation adjustments Net unrealized gains (losses) on derivatives Pension and postretirement benefit adjustments Accumulated other comprehensive net (loss) income Balance as of September 30, 2022 $ (477) $ 113 $ (151) $ (515) Other comprehensive (loss) income before reclassifications 18 — — 18 Amounts reclassified from Accumulated other comprehensive net (loss) income — (6) 2 (4) Income tax benefit (expense) — — (1) (1) Net current period other comprehensive (loss) income 18 (6) 1 13 Balance as of December 31, 2022 $ (459) $ 107 $ (150) $ (502) Balance as of September 30, 2023 $ (456) $ 98 $ (136) $ (494) Other comprehensive (loss) income before reclassifications 17 (6) (7) 4 Amounts reclassified from Accumulated other comprehensive net (loss) income (1) — (3) 172 169 Income tax benefit (expense), and other — 1 (39) (38) Net current period other comprehensive (loss) income 17 (8) 126 135 Balance as of December 31, 2023 $ (439) $ 90 $ (10) $ (359) Six months ended December 31 Foreign currency translation adjustments Net unrealized gains (losses) on derivatives Pension and postretirement benefit adjustments Accumulated other comprehensive net (loss) income Balance as of June 30, 2022 $ (448) $ 121 $ (152) $ (479) Other comprehensive (loss) income before reclassifications (11) (2) — (13) Amounts reclassified from Accumulated other comprehensive net (loss) income — (14) 3 (11) Income tax benefit (expense) — 2 (1) 1 Net current period other comprehensive (loss) income (11) (14) 2 (23) Balance as of December 31, 2022 $ (459) $ 107 $ (150) $ (502) Balance as of June 30, 2023 $ (445) $ 99 $ (147) $ (493) Other comprehensive (loss) income before reclassifications 6 (6) 4 4 Amounts reclassified from Accumulated other comprehensive net (loss) income (1) — (4) 175 171 Income tax benefit (expense), and other — 1 (42) (41) Net current period other comprehensive (loss) income 6 (9) 137 134 Balance as of December 31, 2023 $ (439) $ 90 $ (10) $ (359) (1) Includes recognition of pension settlement charge reclassified into Net earnings. See Note 12 for additional details. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 6 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS In the second quarter of fiscal year 2024, the Company settled plan benefits of its domestic qualified pension plan (the Plan), through a combination of an annuity contract purchase with a third-party insurance provider and lump sum payouts. These payments were made using Plan assets. The third-party insurance provider assumed the obligation to pay future pension benefits and provide administrative services and started making direct payments to participants in January 2024. In conjunction with this settlement, a one-time noncash charge, net of curtailment gain, of $171 before taxes ($130 after tax) was recorded in the Company’s condensed consolidated statement of earnings and comprehensive income primarily as a result of accelerating the recognition of actuarial losses previously included in Accumulated other comprehensive net (loss) income that would have been recognized in future periods. The Company continues to maintain various other retirement income plans for eligible domestic and international employees. The following table summarizes the components of net periodic benefit cost for the Company’s retirement income plans: Three months ended Six months ended 12/31/2023 12/31/2022 12/31/2023 12/31/2022 Interest cost $ 3 $ 4 $ 8 $ 9 Expected return on plan assets (1) 1 (2) (2) (5) Amortization of unrecognized items 1 2 3 4 Curtailment gain (6) — (6) — Settlement loss 177 — 178 — Total $ 176 $ 4 $ 181 $ 8 (1) The weighted average long-term expected rate of return on plan assets used in computing the fiscal year 2024 net periodic benefit cost is 3.3%. The net periodic benefit cost for the Company’s retirement health care plans was $0 for both the three and six months ended December 31, 2023 and 2022. During both the three months ended December 31, 2023 and 2022, the Company made $2 in contributions to its domestic retirement income plans. During both the six months ended December 31, 2023 and 2022, the Company made $4 in contributions to its domestic retirement income plans. Service cost component of the net periodic benefit cost, if any, is reflected in employee benefit costs. All other components are reflected in Other (income) expense, net. |
OTHER CONTINGENCIES AND GUARANT
OTHER CONTINGENCIES AND GUARANTEES | 6 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
OTHER CONTINGENCIES AND GUARANTEES | OTHER CONTINGENCIES AND GUARANTEES Contingencies The Company is involved in certain environmental matters, including response actions at various locations. The Company recorded liabilities totaling $28 as of both December 31, 2023 and June 30, 2023, respectively, for its share of aggregate future remediation costs related to these matters. One matter, which accounted for $12 of the recorded liability as of both December 31, 2023 and June 30, 2023, respectively, relates to environmental costs associated with one of the Company’s former operations at a site located in Alameda County, California. In November 2016, at the request of regulators and with the assistance of environmental consultants, the Company submitted a Feasibility Study that evaluated various options for managing groundwater at the site and included estimates of the related costs. Following further discussions with the regulators in 2017, the Company recorded an undiscounted liability for costs estimated to be incurred over a 30-year period, based on one of the options in the Feasibility Study related to groundwater. In September 2021, as a result of an additional study and further discussions with regulators, the Company submitted a Soil Vapor Intrusion Report to the regulators. In January 2023, the regulators issued a new order directing the Company and the current property owner to conduct a Remedial Investigation and then prepare a Feasibility Study to evaluate and remediate impacts to soil, soil vapor and indoor air. While the Company believes its latest estimates of remediation costs (including any related to soil, soil vapor and indoor air impacts) are reasonable, the ultimate remediation requirements are not yet finalized and the regulators could require the Company to implement remediation actions for a longer period or take additional actions, which could include estimated undiscounted costs in the aggregate of up to approximately $28 over an estimated 30-year period, or require the Company to take different actions and incur additional costs. Another matter in Dickinson County, Michigan, at the site of one of the Company’s former operations for which the Company is jointly and severally liable, accounted for $10 of the recorded liability as of both December 31, 2023 and June 30, 2023, respectively. This amount reflects the Company’s agreement to be liable for 24.3% of the aggregate remediation and associated costs for this matter pursuant to a cost-sharing agreement with a third party. If the third party is unable to pay its share of the response and remediation obligations, the Company may be responsible for such obligations. With the assistance of environmental consultants, the Company maintains an undiscounted liability representing its current best estimate of its share of the capital expenditures, maintenance and other costs that may be incurred over an estimated 30-year remediation period. Although it is reasonably possible that the Company’s exposure may exceed the amount recorded for the Dickinson County matter, any amount of such additional exposures, or range of exposures, is not estimable at this time. The Company’s estimated losses related to these matters are sensitive to a variety of uncertain factors, including the efficacy of any remediation efforts, changes in any remediation requirements and the future availability of alternative clean-up technologies. From time to time, the Company is subject to various legal proceedings, claims and other loss contingencies, including, without limitation, loss contingencies relating to contractual arrangements (including costs connected to the transition and unwinding of certain supply and manufacturing relationships), product liability, patents and trademarks, advertising, labor and employment, environmental, health and safety and other matters. With respect to these proceedings, claims and other loss contingencies, while considerable uncertainty exists, in the opinion of management at this time, the ultimate disposition of these matters, to the extent not previously provided for, will not have a material adverse effect, either individually or in the aggregate, on the Company’s condensed consolidated financial statements taken as a whole. Guarantees In conjunction with divestitures and other transactions, the Company may provide typical indemnifications (e.g., indemnifications for representations and warranties and retention of previously existing environmental, tax and employee liabilities) that have terms that vary in duration and in the potential amount of the total obligation and, in many circumstances, are not explicitly defined. The Company has not made, nor does it believe that it is probable that it will make, any material payments relating to its indemnifications and believes that any reasonably possible payments would not have a material adverse effect, either individually or in the aggregate, on the Company’s condensed consolidated financial statements taken as a whole. The Company had not recorded any material liabilities on the aforementioned guarantees as of both December 31, 2023 and June 30, 2023. The Company was a party to letters of credit of $17 as of December 31, 2023, primarily related to its insurance carriers, of which $0 had been drawn upon. |
SEGMENT RESULTS
SEGMENT RESULTS | 6 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT RESULTS | SEGMENT RESULTS The Company operates through strategic business units (SBUs) which are organized into operating segments. Operating segments are then aggregated into four reportable segments: Health and Wellness, Household, Lifestyle and International. Operating segments not aggregated into a reportable segment are reflected in Corporate and Other. Corporate and Other includes certain non-allocated administrative costs and various other non-operating income and expenses, as well as the results of the Vitamins, Minerals and Supplements (VMS) business. Assets in Corporate and Other include cash and cash equivalents, prepaid expenses and other current assets, property and equipment, operating lease right-of-use assets, other long-term assets and deferred taxes, as well as the assets related to the VMS business. The principle measure of segment profitability used by management is segment adjusted earnings (losses) before interest and income taxes (segment adjusted EBIT). Segment adjusted EBIT is defined as earnings (losses) before income taxes excluding interest income, interest expense and other significant items that are nonrecurring or unusual (such as the pension settlement charge, incremental charges relating to the cyberattack, asset impairments, charges related to the streamlined operating model, charges related to the digital capabilities and productivity enhancements investment, significant losses/(gains) related to acquisitions and other nonrecurring or unusual items impacting comparability). The tables below present reportable segment information and a reconciliation of the segment information to the Company’s consolidated net sales and earnings (losses) before income taxes, with amounts that are not allocated to the reportable segments reflected in Corporate and Other. Net sales Three months ended Six months ended 12/31/2023 12/31/2022 12/31/2023 12/31/2022 Health and Wellness $ 720 $ 577 $ 1,224 $ 1,234 Household 502 462 827 885 Lifestyle 403 332 632 652 International 311 286 581 571 Corporate and Other 54 58 112 113 Total $ 1,990 $ 1,715 $ 3,376 $ 3,455 Segment adjusted EBIT Three months ended Six months ended 12/31/2023 12/31/2022 12/31/2023 12/31/2022 Health and Wellness $ 259 $ 124 $ 363 $ 257 Household 92 44 88 66 Lifestyle 109 74 128 134 International 32 24 66 47 Corporate and Other (106) (87) (168) (150) Total $ 386 $ 179 $ 477 $ 354 Interest income 7 3 17 5 Interest expense (26) (23) (47) (45) Pension settlement charge (1) (171) — (171) — Cyberattack costs (2) (25) — (49) — Streamlined operating model (3) (3) (4) (3) (23) Digital capabilities and productivity enhancements investment (4) (32) (25) (59) (45) Earnings before income taxes $ 136 $ 130 $ 165 $ 246 (1) Represents costs related to the settlement of the domestic qualified pension plan corresponding to Corporate and Other. See Note 12 for additional details relating to the pension settlement. (2) Represents incremental costs related to the cyberattack. See Note 2 for additional details relating to the cyberattack. For informational purposes, the following table provides the approximate cyberattack costs corresponding to the Company’s reportable segments as a percentage of total costs: Three months ended Six months ended 12/31/2023 12/31/2023 Health and Wellness 9 % 15 % Household 11 11 Lifestyle 12 13 International 7 4 Corporate and Other 61 57 Total 100 % 100 % (3) Represents restructuring and related implementation costs, net for the streamlined operating model of $3 for both the three and six months ended December 31, 2023 and $4 and $23 for the three and six months ended December 31, 2022, respectively. For informational purposes, the following table provides the approximate restructuring and related implementation costs, net corresponding to the Company’s reportable segments as a percentage of the total costs: Three months ended Six months ended Inception to date ended 12/31/2023 12/31/2022 12/31/2023 12/31/2022 12/31/2023 Health and Wellness — % — % — % 5 % 6 % Household — — — — 1 Lifestyle — — — 5 3 International — — — 16 15 Corporate and Other 100 100 100 74 75 Total 100 % 100 % 100 % 100 % 100 % (4) Represents expenses related to the Company’s digital capabilities and productivity enhancements investment corresponding to Corporate and Other. All intersegment sales are eliminated and are not included in the Company’s reportable segments’ net sales. Net sales to the Company’s largest customer, Walmart Inc. and its affiliates, as a percentage of consolidated net sales, were 23% and 25% for the three and six months ended December 31, 2023, respectively and 25% and 26% for the three and six months ended December 31, 2022, respectively. The following table provides Net sales as a percentage of the Company’s consolidated net sales, disaggregated by operating segment, for the periods indicated: Net sales Three months ended Six months ended 12/31/2023 12/31/2022 12/31/2023 12/31/2022 Cleaning 31 % 29 % 31 % 31 % Professional Products 5 5 5 5 Health and Wellness 36 % 34 % 36 % 36 % Bags and Wraps 12 14 11 13 Cat Litter 9 9 9 9 Grilling 4 4 4 4 Household 25 % 27 % 24 % 26 % Food 11 10 10 10 Natural Personal Care 5 5 4 4 Water Filtration 4 4 5 4 Lifestyle 20 % 19 % 19 % 18 % International 16 % 17 % 17 % 17 % Corporate and Other 3 % 3 % 4 % 3 % Total 100 % 100 % 100 % 100 % |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 93 | $ 99 | $ 115 | $ 184 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited interim condensed consolidated financial statements for the three and six months ended December 31, 2023 and 2022, in the opinion of management, reflect all normal and recurring adjustments considered necessary for a fair presentation of the consolidated results of operations, financial position and cash flows of The Clorox Company and its controlled subsidiaries (the Company or Clorox) for the periods presented. However, the financial results for interim periods are not necessarily indicative of the results that may be expected for a full fiscal year or for any other future period. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP) have been omitted or condensed pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). The information in this report should be read in conjunction with the Company’s Annual Report on Form 10-K filed with the SEC for the fiscal year ended June 30, 2023, which includes a complete set of footnote disclosures, including the Company’s significant accounting policies. |
Recently Issued Accounting Standards Not Yet Adopted and Recently Adopted Accounting Standards | Recently Issued Accounting Standards Recently Issued Accounting Standards Not Yet Adopted In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” These amendments primarily require enhanced disclosures and disaggregation of income tax information by jurisdiction in the annual income tax reconciliation and quantitative and qualitative disclosures regarding income taxes paid. These amendments are to be applied prospectively, with the option to apply the standard retrospectively, for annual periods beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of this guidance will have on the Company’s disclosures. In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” These amendments primarily require enhanced disclosures about significant segment expenses regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss. The ASU also requires all annual disclosures currently required by Topic 280 to be included in interim periods. These amendments are to be applied retrospectively for all periods presented in the financial statements and are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact that the adoption of this guidance will have on the Company’s disclosures. Recently Adopted Accounting Standards In September 2022, the FASB issued ASU No. 2022-04, "Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations.” These amendments require disclosure of the key terms of outstanding supplier finance programs and a rollforward of the related obligations. These amendments are effective for fiscal years beginning after December 15, 2022, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. The Company adopted the standard as of July 1, 2023. The adoption relates to disclosures only and does not have an impact on the condensed consolidated financial statements, results of operations, or cash flows. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Financial assets and liabilities measured at fair value on a recurring basis in the condensed consolidated balance sheets are required to be classified and disclosed in one of the following three categories of the fair value hierarchy: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs reflecting the reporting entity’s own assumptions. As of both December 31, 2023 and June 30, 2023, the Company’s financial assets and liabilities that were measured at fair value on a recurring basis during the period included derivative financial instruments, which were classified as either Level 1 or Level 2, and trust assets to fund the Company’s nonqualified deferred compensation plans, which were classified as Level 1. |
Segment Results | The Company operates through strategic business units (SBUs) which are organized into operating segments. Operating segments are then aggregated into four reportable segments: Health and Wellness, Household, Lifestyle and International. Operating segments not aggregated into a reportable segment are reflected in Corporate and Other. Corporate and Other includes certain non-allocated administrative costs and various other non-operating income and expenses, as well as the results of the Vitamins, Minerals and Supplements (VMS) business. Assets in Corporate and Other include cash and cash equivalents, prepaid expenses and other current assets, property and equipment, operating lease right-of-use assets, other long-term assets and deferred taxes, as well as the assets related to the VMS business. |
CYBERATTACK (Tables)
CYBERATTACK (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Summary of Costs Recognized From Cyberattack | The following table summarizes the recognition of costs in the condensed consolidated statements of earnings and comprehensive income: Three months ended Six months ended 12/31/2023 12/31/2023 Costs of products sold $ 9 $ 20 Selling and administrative expenses 16 29 Total $ 25 $ 49 |
RESTRUCTURING AND RELATED COS_2
RESTRUCTURING AND RELATED COSTS (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The total restructuring and related implementation costs, net associated with the Company’s streamlined operating model as reflected in the condensed consolidated statements of earnings and comprehensive income: Three months ended Six months ended Inception to date ended 12/31/2023 12/31/2022 12/31/2023 12/31/2022 12/31/2023 Costs of products sold $ — $ — $ — $ (1) $ (3) Selling and administrative expenses 3 4 3 5 15 Research and development — — — — (1) Other (income) expense, net: Employee-related costs — — — 19 52 Total, net $ 3 $ 4 $ 3 $ 23 $ 63 |
Schedule of Restructuring Reserve by Type of Cost | The following table reconciles the accrual for the streamlined operating model’s restructuring and related implementation costs discussed above, which are recorded within Accounts payable and accrued liabilities in the condensed consolidated balance sheets: Employee-Related Costs Other Total Accrual Balance as of June 30, 2023 $ 23 $ 5 $ 28 Charges — 3 3 Cash payments (17) (6) (23) Accrual Balance as of December 31, 2023 $ 6 $ 2 $ 8 |
INVENTORIES, NET (Tables)
INVENTORIES, NET (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories, Net | Inventories, net consisted of the following as of: 12/31/2023 6/30/2023 Finished goods $ 562 $ 595 Raw materials and packaging 188 182 Work in process 11 8 LIFO allowances (104) (87) Total inventories, net $ 657 $ 698 Less: Non-current inventories, net (1) 2 2 Total current inventories, net $ 655 $ 696 (1) Non-current inventories, net are recorded in Other assets. |
FINANCIAL INSTRUMENTS AND FAI_2
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS [Abstract] | |
Effects of Derivative Instruments Designated as Hedging Instruments on OCI | The effects of derivative instruments designated as hedging instruments on Other comprehensive (loss) income and Net earnings were as follows: Gains (losses) recognized in Other comprehensive (loss) income Three months ended Six months ended 12/31/2023 12/31/2022 12/31/2023 12/31/2022 Commodity purchase derivative contracts $ (4) $ 1 $ (5) $ (2) Foreign exchange derivative contracts (2) (1) (1) — Interest rate derivative contracts — — — — Total $ (6) $ — $ (6) $ (2) |
Effects of Derivative Instruments Designated as Hedging Instruments on Net Earnings | Location of gains (losses) reclassified from Accumulated other comprehensive net (loss) income into Net earnings Gains (losses) reclassified from Accumulated other comprehensive net (loss) income and recognized in Net earnings Three months ended Six months ended 12/31/2023 12/31/2022 12/31/2023 12/31/2022 Commodity purchase derivative contracts Cost of products sold $ — $ 3 $ (2) $ 7 Foreign exchange derivative contracts Cost of products sold — — — 1 Interest rate derivative contracts Interest expense 3 3 6 6 Total $ 3 $ 6 $ 4 $ 14 |
Schedule of Assets and Liabilities for Fair Value Disclosure | The following table provides information about the balance sheet classification and the fair values of the Company’s derivative instruments: 12/31/2023 6/30/2023 Balance sheet Fair value Carrying Estimated Carrying Estimated Assets Commodity purchase options contracts Prepaid expenses and other current assets 1 — — 2 2 $ — $ — $ 2 $ 2 Liabilities Commodity purchase futures contracts Accounts payable and accrued liabilities 1 — — — — Commodity purchase swaps contracts Accounts payable and accrued liabilities 2 — — 1 1 Foreign exchange forward contract Accounts payable and accrued liabilities 2 1 1 — — $ 1 $ 1 $ 1 $ 1 The following table provides information about the balance sheet classification and the fair values of the Company’s other assets and liabilities for which disclosure of fair value is required: 12/31/2023 6/30/2023 Balance sheet Fair value Carrying Estimated Carrying Estimated Assets Interest-bearing investments, including money market funds Cash and cash equivalents (1) 1 $ 215 $ 215 $ 243 $ 243 Time deposits Cash and cash equivalents (1) 2 8 8 9 9 Trust assets for nonqualified deferred compensation plans Other assets 1 150 150 129 129 $ 373 $ 373 $ 381 $ 381 Liabilities Notes and loans payable Notes and loans payable (2) 2 $ 247 $ 247 $ 50 $ 50 Current maturities of long-term debt and Long-term debt Current maturities of long- term debt and Long-term debt (3) 2 2,479 2,376 2,477 2,327 $ 2,726 $ 2,623 $ 2,527 $ 2,377 (1) Cash and cash equivalents are composed of time deposits and other interest-bearing investments, including money market funds with original maturity dates of 90 days or less. Cash and cash equivalents are recorded at cost, which approximates fair value. (2) Notes and loans payable are composed of outstanding U.S. commercial paper balances and/or amounts drawn on the Company’s credit agreements, all of which are recorded at cost, which approximates fair value. (3) Current maturities of long-term debt and Long-term debt are recorded at cost. The fair value of Long-term debt, including current maturities, was determined using secondary market prices quoted by corporate bond dealers, and is classified as Level 2. |
OTHER (INCOME) EXPENSE, NET (Ta
OTHER (INCOME) EXPENSE, NET (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Major Components of Other (Income) Expense, Net | The major components of Other (income) expense, net were: Three months ended Six months ended 12/31/2023 12/31/2022 12/31/2023 12/31/2022 Amortization of trademarks and other intangible assets $ 7 $ 7 $ 15 $ 14 Trust investment (gains) losses, net (12) (6) (10) (1) Net periodic benefit cost 5 4 10 8 Foreign exchange transaction (gains) losses, net (1) 15 1 23 3 Income from equity investees (1) (1) (2) (2) Interest income (7) (3) (17) (5) Restructuring costs (2) — — — 19 Gain on sale-leaseback transaction (3) (16) — (16) — Other 2 (6) 2 (6) Total $ (7) $ (4) $ 5 $ 30 (1) Foreign exchange losses are primarily related to the Company’s operations in Argentina. (2) Restructuring costs related to the implementation of the Company's streamlined operating model. See Note 4 for additional details. (3) On December 14, 2023, the Company completed an asset sale-leaseback transaction on a warehouse in Fairfield, California. The Company received proceeds of $19, net of selling costs, the asset had a carrying value of $3, and the transaction resulted in a $16 gain which was recognized in Other (income) expense, net in the Health and Wellness segment. The leaseback is accounted for as an operating lease. The term of the lease is 8 years, with options to extend the lease for two 5 year periods. |
NET EARNINGS PER SHARE (EPS) (T
NET EARNINGS PER SHARE (EPS) (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares Outstanding and Antidilutive Shares | The following is the reconciliation of the weighted average number of shares outstanding (in thousands) used to calculate basic net EPS to those used to calculate diluted net EPS: Three months ended Six months ended 12/31/2023 12/31/2022 12/31/2023 12/31/2022 Basic 124,176 123,546 124,075 123,443 Dilutive effect of stock options and other 444 442 560 508 Diluted 124,620 123,988 124,635 123,951 Antidilutive stock options and other 3,527 2,942 3,527 2,963 |
COMPREHENSIVE INCOME (Tables)
COMPREHENSIVE INCOME (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Comprehensive Income | The following table provides a summary of Comprehensive income for the periods indicated: Three months ended Six months ended 12/31/2023 12/31/2022 12/31/2023 12/31/2022 Net earnings $ 96 $ 102 $ 121 $ 189 Other comprehensive (loss) income, net of tax: Foreign currency translation adjustments 17 18 6 (11) Net unrealized gains (losses) on derivatives (8) (6) (9) (14) Pension and postretirement benefit adjustments 126 1 137 2 Total other comprehensive (loss) income, net of tax 135 13 134 (23) Comprehensive income 231 115 255 166 Less: Total comprehensive income attributable to noncontrolling interests 3 3 6 5 Total comprehensive income attributable to Clorox $ 228 $ 112 $ 249 $ 161 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of Stockholders Equity | Changes in the components of Stockholders’ equity were as follows for the periods indicated: Three months ended December 31 (Dollars in millions except per share data; shares in thousands) Common stock Additional paid-in capital Retained earnings Treasury stock Accumulated Noncontrolling interests Total stockholders’ equity Amount Shares Amount Shares Balance as of September 30, 2022 $ 131 130,741 $ 1,193 $ 832 $ (1,315) (7,385) $ (515) $ 170 $ 496 Net earnings — — — 99 — — — 3 102 Other comprehensive (loss) income — — — — — — 13 — 13 Dividends to Clorox stockholders ($1.18 per share declared) — — — (147) — — — — (147) Dividends to noncontrolling interests — — — — — — — (3) (3) Stock-based compensation — — 21 — — — — — 21 Other employee stock plan activities — — (7) (2) 18 122 — — 9 Balance as of December 31, 2022 $ 131 130,741 $ 1,207 $ 782 $ (1,297) (7,263) $ (502) $ 170 $ 491 Balance as of September 30, 2023 $ 131 130,741 $ 1,246 $ 299 $ (1,219) (6,740) $ (494) $ 168 $ 131 Net earnings (losses) — — — 93 — — — 3 96 Other comprehensive (loss) income — — — — — — 135 — 135 Dividends to Clorox stockholders ($1.20 per share declared) — — — (150) — — — — (150) Dividends to noncontrolling interests — — — — — — — (6) (6) Stock-based compensation — — 16 — — — — — 16 Other employee stock plan activities — — (17) (1) 14 79 — — (4) Balance as of December 31, 2023 $ 131 130,741 $ 1,245 $ 241 $ (1,205) (6,661) $ (359) $ 165 $ 218 Six months ended December 31 (Dollars in millions except per share data; shares in thousands) Common stock Additional paid-in capital Retained earnings Treasury stock Accumulated other comprehensive net (loss) income Noncontrolling interests Total stockholders’ equity Amount Shares Amount Shares Balance as of June 30, 2022 $ 131 130,741 $ 1,202 $ 1,048 $ (1,346) (7,589) $ (479) $ 173 $ 729 Net earnings — — — 184 — — — 5 189 Other comprehensive (loss) income — — — — — — (23) — (23) Dividends to Clorox stockholders ($3.54 per share declared) — — — (440) — — — — (440) Dividends to noncontrolling interests — — — — — — — (8) (8) Stock-based compensation — — 31 — — — — — 31 Other employee stock plan activities — — (26) (10) 49 326 — — 13 Balance as of December 31, 2022 $ 131 130,741 $ 1,207 $ 782 $ (1,297) (7,263) $ (502) $ 170 $ 491 Balance as of June 30, 2023 $ 131 130,741 $ 1,245 $ 583 $ (1,246) (6,921) $ (493) $ 168 $ 388 Net earnings (losses) — — — 115 — — — 6 121 Other comprehensive (loss) income — — — — — — 134 — 134 Dividends to Clorox stockholders ($3.60 per share declared) — — — (450) — — — — (450) Dividends to noncontrolling interests — — — — — — — (9) (9) Stock-based compensation — — 29 — — — — — 29 Other employee stock plan activities — — (29) (7) 41 260 — — 5 Balance as of December 31, 2023 $ 131 130,741 $ 1,245 $ 241 $ (1,205) (6,661) $ (359) $ 165 $ 218 |
Schedule of Changes in Accumulated Other Comprehensive Net (Losses) Income | Changes in Accumulated other comprehensive net (loss) income attributable to Clorox by component were as follows for the periods indicated: Three months ended December 31 Foreign currency translation adjustments Net unrealized gains (losses) on derivatives Pension and postretirement benefit adjustments Accumulated other comprehensive net (loss) income Balance as of September 30, 2022 $ (477) $ 113 $ (151) $ (515) Other comprehensive (loss) income before reclassifications 18 — — 18 Amounts reclassified from Accumulated other comprehensive net (loss) income — (6) 2 (4) Income tax benefit (expense) — — (1) (1) Net current period other comprehensive (loss) income 18 (6) 1 13 Balance as of December 31, 2022 $ (459) $ 107 $ (150) $ (502) Balance as of September 30, 2023 $ (456) $ 98 $ (136) $ (494) Other comprehensive (loss) income before reclassifications 17 (6) (7) 4 Amounts reclassified from Accumulated other comprehensive net (loss) income (1) — (3) 172 169 Income tax benefit (expense), and other — 1 (39) (38) Net current period other comprehensive (loss) income 17 (8) 126 135 Balance as of December 31, 2023 $ (439) $ 90 $ (10) $ (359) Six months ended December 31 Foreign currency translation adjustments Net unrealized gains (losses) on derivatives Pension and postretirement benefit adjustments Accumulated other comprehensive net (loss) income Balance as of June 30, 2022 $ (448) $ 121 $ (152) $ (479) Other comprehensive (loss) income before reclassifications (11) (2) — (13) Amounts reclassified from Accumulated other comprehensive net (loss) income — (14) 3 (11) Income tax benefit (expense) — 2 (1) 1 Net current period other comprehensive (loss) income (11) (14) 2 (23) Balance as of December 31, 2022 $ (459) $ 107 $ (150) $ (502) Balance as of June 30, 2023 $ (445) $ 99 $ (147) $ (493) Other comprehensive (loss) income before reclassifications 6 (6) 4 4 Amounts reclassified from Accumulated other comprehensive net (loss) income (1) — (4) 175 171 Income tax benefit (expense), and other — 1 (42) (41) Net current period other comprehensive (loss) income 6 (9) 137 134 Balance as of December 31, 2023 $ (439) $ 90 $ (10) $ (359) (1) Includes recognition of pension settlement charge reclassified into Net earnings. See Note 12 for additional details. |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Net Periodic Benefit Cost | The following table summarizes the components of net periodic benefit cost for the Company’s retirement income plans: Three months ended Six months ended 12/31/2023 12/31/2022 12/31/2023 12/31/2022 Interest cost $ 3 $ 4 $ 8 $ 9 Expected return on plan assets (1) 1 (2) (2) (5) Amortization of unrecognized items 1 2 3 4 Curtailment gain (6) — (6) — Settlement loss 177 — 178 — Total $ 176 $ 4 $ 181 $ 8 (1) The weighted average long-term expected rate of return on plan assets used in computing the fiscal year 2024 net periodic benefit cost is 3.3%. |
SEGMENT RESULTS (Tables)
SEGMENT RESULTS (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Selected Financial Information Relating to the Company's Segments | The principle measure of segment profitability used by management is segment adjusted earnings (losses) before interest and income taxes (segment adjusted EBIT). Segment adjusted EBIT is defined as earnings (losses) before income taxes excluding interest income, interest expense and other significant items that are nonrecurring or unusual (such as the pension settlement charge, incremental charges relating to the cyberattack, asset impairments, charges related to the streamlined operating model, charges related to the digital capabilities and productivity enhancements investment, significant losses/(gains) related to acquisitions and other nonrecurring or unusual items impacting comparability). The tables below present reportable segment information and a reconciliation of the segment information to the Company’s consolidated net sales and earnings (losses) before income taxes, with amounts that are not allocated to the reportable segments reflected in Corporate and Other. Net sales Three months ended Six months ended 12/31/2023 12/31/2022 12/31/2023 12/31/2022 Health and Wellness $ 720 $ 577 $ 1,224 $ 1,234 Household 502 462 827 885 Lifestyle 403 332 632 652 International 311 286 581 571 Corporate and Other 54 58 112 113 Total $ 1,990 $ 1,715 $ 3,376 $ 3,455 Segment adjusted EBIT Three months ended Six months ended 12/31/2023 12/31/2022 12/31/2023 12/31/2022 Health and Wellness $ 259 $ 124 $ 363 $ 257 Household 92 44 88 66 Lifestyle 109 74 128 134 International 32 24 66 47 Corporate and Other (106) (87) (168) (150) Total $ 386 $ 179 $ 477 $ 354 Interest income 7 3 17 5 Interest expense (26) (23) (47) (45) Pension settlement charge (1) (171) — (171) — Cyberattack costs (2) (25) — (49) — Streamlined operating model (3) (3) (4) (3) (23) Digital capabilities and productivity enhancements investment (4) (32) (25) (59) (45) Earnings before income taxes $ 136 $ 130 $ 165 $ 246 (1) Represents costs related to the settlement of the domestic qualified pension plan corresponding to Corporate and Other. See Note 12 for additional details relating to the pension settlement. (2) Represents incremental costs related to the cyberattack. See Note 2 for additional details relating to the cyberattack. For informational purposes, the following table provides the approximate cyberattack costs corresponding to the Company’s reportable segments as a percentage of total costs: Three months ended Six months ended 12/31/2023 12/31/2023 Health and Wellness 9 % 15 % Household 11 11 Lifestyle 12 13 International 7 4 Corporate and Other 61 57 Total 100 % 100 % (3) Represents restructuring and related implementation costs, net for the streamlined operating model of $3 for both the three and six months ended December 31, 2023 and $4 and $23 for the three and six months ended December 31, 2022, respectively. For informational purposes, the following table provides the approximate restructuring and related implementation costs, net corresponding to the Company’s reportable segments as a percentage of the total costs: Three months ended Six months ended Inception to date ended 12/31/2023 12/31/2022 12/31/2023 12/31/2022 12/31/2023 Health and Wellness — % — % — % 5 % 6 % Household — — — — 1 Lifestyle — — — 5 3 International — — — 16 15 Corporate and Other 100 100 100 74 75 Total 100 % 100 % 100 % 100 % 100 % (4) Represents expenses related to the Company’s digital capabilities and productivity enhancements investment corresponding to Corporate and Other. The following table provides Net sales as a percentage of the Company’s consolidated net sales, disaggregated by operating segment, for the periods indicated: Net sales Three months ended Six months ended 12/31/2023 12/31/2022 12/31/2023 12/31/2022 Cleaning 31 % 29 % 31 % 31 % Professional Products 5 5 5 5 Health and Wellness 36 % 34 % 36 % 36 % Bags and Wraps 12 14 11 13 Cat Litter 9 9 9 9 Grilling 4 4 4 4 Household 25 % 27 % 24 % 26 % Food 11 10 10 10 Natural Personal Care 5 5 4 4 Water Filtration 4 4 5 4 Lifestyle 20 % 19 % 19 % 18 % International 16 % 17 % 17 % 17 % Corporate and Other 3 % 3 % 4 % 3 % Total 100 % 100 % 100 % 100 % |
CYBERATTACK (Narrative) (Detail
CYBERATTACK (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Unusual or Infrequent Item, or Both [Line Items] | ||||
Incremental expenses | $ 25 | $ 0 | $ 49 | $ 0 |
Cyberattack | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Incremental expenses | 25 | 49 | ||
Insurance proceeds | $ 0 | $ 0 |
CYBERATTACK (Summary of Costs R
CYBERATTACK (Summary of Costs Recognized from Cyberattack) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Unusual or Infrequent Item, or Both [Line Items] | ||||
Total | $ 25 | $ 0 | $ 49 | $ 0 |
Cyberattack | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Total | 25 | 49 | ||
Cyberattack | Costs of products sold | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Total | 9 | 20 | ||
Cyberattack | Selling and administrative expenses | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Total | $ 16 | $ 29 |
SUPPLY CHAIN FINANCING PROGRAM
SUPPLY CHAIN FINANCING PROGRAM (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Jun. 30, 2023 |
Supplier Finance Program [Line Items] | ||
Supplier Finance Program, Obligation, Current, Statement of Financial Position [Extensible Enumeration] | Accounts payable and accrued liabilities | Accounts payable and accrued liabilities |
Amount due to suppliers participating in SCF | $ 188 | $ 220 |
Maximum | ||
Supplier Finance Program [Line Items] | ||
SCF payment term | 120 days |
RESTRUCTURING AND RELATED COS_3
RESTRUCTURING AND RELATED COSTS (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | 18 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2023 | Dec. 31, 2023 | Jun. 30, 2024 | |
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and related implementation, incurred cost | $ 3 | $ 4 | $ 3 | $ 23 | $ 60 | $ 63 | |
Minimum | Forecast | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and related implementation, expected cost | $ 30 | ||||||
Minimum | Forecast | Employee-Related Costs | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and related implementation, expected cost | 5 | ||||||
Maximum | Forecast | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and related implementation, expected cost | 40 | ||||||
Maximum | Forecast | Employee-Related Costs | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and related implementation, expected cost | $ 10 |
RESTRUCTURING AND RELATED COS_4
RESTRUCTURING AND RELATED COSTS (Restructuring and Related Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | 18 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2023 | Dec. 31, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Total, net | $ 3 | $ 4 | $ 3 | $ 23 | $ 60 | $ 63 |
Costs of products sold | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring, Incurred Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of products sold | Cost of products sold | Cost of products sold | Cost of products sold | Cost of products sold | |
Total, net | $ 0 | $ 0 | $ 0 | $ (1) | $ (3) | |
Selling and administrative expenses | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring, Incurred Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling and administrative expenses | Selling and administrative expenses | Selling and administrative expenses | Selling and administrative expenses | Selling and administrative expenses | |
Total, net | $ 3 | $ 4 | $ 3 | $ 5 | $ 15 | |
Research and development | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring, Incurred Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Research and development costs | Research and development costs | Research and development costs | Research and development costs | Research and development costs | |
Total, net | $ 0 | $ 0 | $ 0 | $ 0 | $ (1) | |
Other (income) expense, net | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring, Incurred Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other (income) expense, net | Other (income) expense, net | Other (income) expense, net | Other (income) expense, net | Other (income) expense, net | |
Total, net | $ 0 | $ 0 | $ 0 | $ 19 | $ 52 |
RESTRUCTURING AND RELATED COS_5
RESTRUCTURING AND RELATED COSTS (Accrual Reconciliation) (Details) $ in Millions | 6 Months Ended |
Dec. 31, 2023 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Accrual Balance as of June 30, 2023 | $ 28 |
Charges | 3 |
Cash payments | (23) |
Accrual Balance as of December 31, 2023 | 8 |
Employee-Related Costs | |
Restructuring Reserve [Roll Forward] | |
Accrual Balance as of June 30, 2023 | 23 |
Charges | 0 |
Cash payments | (17) |
Accrual Balance as of December 31, 2023 | 6 |
Other | |
Restructuring Reserve [Roll Forward] | |
Accrual Balance as of June 30, 2023 | 5 |
Charges | 3 |
Cash payments | (6) |
Accrual Balance as of December 31, 2023 | $ 2 |
INVENTORIES, NET (Details)
INVENTORIES, NET (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Jun. 30, 2023 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 562 | $ 595 |
Raw materials and packaging | 188 | 182 |
Work in process | 11 | 8 |
LIFO allowances | (104) | (87) |
Total inventories, net | 657 | 698 |
Less: Non-current inventories, net | 2 | 2 |
Total current inventories, net | $ 655 | $ 696 |
FINANCIAL INSTRUMENTS AND FAI_3
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Dec. 31, 2023 | Jun. 30, 2023 | |
Derivative [Line Items] | ||
Maximum duration, foreign exchange contracts (in years) | 2 years | |
Maximum duration, interest rate contracts (in years) | 3 years | |
Estimated amount of the existing net gain (loss) to be reclassified into earnings in the next 12 months | $ 8 | |
Amount of derivative instruments subject to contractually defined counterparty liability position limits | 1 | $ 1 |
Commodity purchase derivative contracts | ||
Derivative [Line Items] | ||
Cash margin balances amount | 2 | 0 |
Purchases of Inventory | Foreign exchange derivative contracts | ||
Derivative [Line Items] | ||
Notional amount of derivatives | $ 45 | 51 |
Total Commodity Purchase Derivative Contracts | ||
Derivative [Line Items] | ||
Maximum duration, commodity contracts (in years) | 2 years | |
Notional amount of derivatives | $ 41 | $ 41 |
FINANCIAL INSTRUMENTS AND FAI_4
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Schedule of the Effects of Derivative Instruments Designated as Hedging Instruments) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in Other comprehensive (loss) income | $ (6) | $ 0 | $ (6) | $ (2) |
Gains (losses) reclassified from Accumulated other comprehensive net (loss) income and recognized in Net earnings | 3 | 6 | 4 | 14 |
Commodity purchase derivative contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in Other comprehensive (loss) income | (4) | 1 | (5) | (2) |
Gains (losses) reclassified from Accumulated other comprehensive net (loss) income and recognized in Net earnings | 0 | 3 | (2) | 7 |
Foreign exchange derivative contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in Other comprehensive (loss) income | (2) | (1) | (1) | 0 |
Gains (losses) reclassified from Accumulated other comprehensive net (loss) income and recognized in Net earnings | 0 | 0 | 0 | 1 |
Interest rate derivative contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in Other comprehensive (loss) income | 0 | 0 | 0 | 0 |
Gains (losses) reclassified from Accumulated other comprehensive net (loss) income and recognized in Net earnings | $ 3 | $ 3 | $ 6 | $ 6 |
FINANCIAL INSTRUMENTS AND FAI_5
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Schedule of Assets and Liabilities for Fair Values of Derivative Instruments) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Jun. 30, 2023 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 0 | $ 2 |
Liabilities | 1 | 1 |
Estimated Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 2 |
Liabilities | 1 | 1 |
Commodity purchase derivative contracts | Fair Value, Inputs, Level 1 | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 2 |
Liabilities | 0 | 0 |
Commodity purchase derivative contracts | Fair Value, Inputs, Level 1 | Estimated Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 2 |
Liabilities | 0 | 0 |
Commodity purchase derivative contracts | Fair Value, Inputs, Level 2 | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 0 | 1 |
Commodity purchase derivative contracts | Fair Value, Inputs, Level 2 | Estimated Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 0 | 1 |
Foreign exchange forward contract | Fair Value, Inputs, Level 2 | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 1 | 0 |
Foreign exchange forward contract | Fair Value, Inputs, Level 2 | Estimated Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | $ 1 | $ 0 |
FINANCIAL INSTRUMENTS AND FAI_6
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Schedule of Assets and Liabilities for Fair Value Disclosure) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Jun. 30, 2023 |
Assets | ||
Cash and cash equivalents | $ 355 | $ 367 |
Total assets | 5,908 | 5,945 |
Liabilities | ||
Notes and loans payable | 247 | 50 |
Total liabilities | 5,690 | 5,557 |
Carrying Amount | ||
Assets | ||
Total assets | 373 | 381 |
Liabilities | ||
Total liabilities | 2,726 | 2,527 |
Estimated Fair Value | ||
Assets | ||
Total assets, estimated fair value | 373 | 381 |
Liabilities | ||
Total liabilities, estimated fair value | 2,623 | 2,377 |
Fair Value, Inputs, Level 1 | Carrying Amount | ||
Assets | ||
Trust assets for nonqualified deferred compensation plans | 150 | 129 |
Fair Value, Inputs, Level 1 | Estimated Fair Value | ||
Assets | ||
Trust assets for nonqualified deferred compensation plans, estimated fair value | 150 | 129 |
Fair Value, Inputs, Level 2 | Carrying Amount | ||
Liabilities | ||
Notes and loans payable | 247 | 50 |
Current maturities of long-term debt and Long-term debt | 2,479 | 2,477 |
Fair Value, Inputs, Level 2 | Estimated Fair Value | ||
Liabilities | ||
Notes and loans payable, estimated fair value | 247 | 50 |
Current maturities of long-term debt and Long-term debt, estimated fair value | 2,376 | 2,327 |
Interest-bearing investments, including money market funds | Fair Value, Inputs, Level 1 | Carrying Amount | ||
Assets | ||
Cash and cash equivalents | 215 | 243 |
Interest-bearing investments, including money market funds | Fair Value, Inputs, Level 1 | Estimated Fair Value | ||
Assets | ||
Cash and cash equivalents, estimated fair value | 215 | 243 |
Time deposits | Fair Value, Inputs, Level 2 | Carrying Amount | ||
Assets | ||
Cash and cash equivalents | 8 | 9 |
Time deposits | Fair Value, Inputs, Level 2 | Estimated Fair Value | ||
Assets | ||
Cash and cash equivalents, estimated fair value | $ 8 | $ 9 |
OTHER (INCOME) EXPENSE, NET (De
OTHER (INCOME) EXPENSE, NET (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Dec. 14, 2023 USD ($) extension_option | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Other Income and Expenses [Abstract] | |||||
Amortization of trademarks and other intangible assets | $ 7 | $ 7 | $ 15 | $ 14 | |
Trust investment (gains) losses, net | (12) | (6) | (10) | (1) | |
Net periodic benefit cost | 5 | 4 | 10 | 8 | |
Foreign exchange transaction (gains) losses, net (1) | 15 | 1 | 23 | 3 | |
Income from equity investees | (1) | (1) | (2) | (2) | |
Interest income | (7) | (3) | (17) | (5) | |
Restructuring costs | 0 | 0 | 0 | 19 | |
Gain on sale-leaseback transaction | (16) | 0 | (16) | 0 | |
Other | 2 | (6) | 2 | (6) | |
Total | (7) | (4) | 5 | 30 | |
Segment Reporting Information [Line Items] | |||||
Proceeds from asset sale-leaseback transaction of warehouse | $ 19 | ||||
Carrying value of warehouse sold in asset sale-leaseback transaction | $ 3 | ||||
Gain on sale-leaseback transaction | $ 16 | $ 0 | $ 16 | $ 0 | |
Sale-leaseback transaction, lease term | 8 years | ||||
Sale-leaseback transaction, number of lease options to extend | extension_option | 2 | ||||
Sale-leaseback transaction, lease renewal term | 5 years | ||||
Health and Wellness | |||||
Other Income and Expenses [Abstract] | |||||
Gain on sale-leaseback transaction | $ (16) | ||||
Segment Reporting Information [Line Items] | |||||
Gain on sale-leaseback transaction | $ 16 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate on earnings | 29.30% | 21.20% | 26.70% | 23% |
Income taxes paid, net of refunds | $ 194 | $ 50 |
NET EARNINGS PER SHARE (EPS) (D
NET EARNINGS PER SHARE (EPS) (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Earnings Per Share [Abstract] | ||||
Basic (in shares) | 124,176 | 123,546 | 124,075 | 123,443 |
Dilutive effect of stock options and other (in shares) | 444 | 442 | 560 | 508 |
Diluted (in shares) | 124,620 | 123,988 | 124,635 | 123,951 |
Antidilutive stock options and other (in shares) | 3,527 | 2,942 | 3,527 | 2,963 |
COMPREHENSIVE INCOME (Details)
COMPREHENSIVE INCOME (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | ||||
Net earnings | $ 96 | $ 102 | $ 121 | $ 189 |
Other comprehensive (loss) income, net of tax: | ||||
Foreign currency translation adjustments | 17 | 18 | 6 | (11) |
Net unrealized gains (losses) on derivatives | (8) | (6) | (9) | (14) |
Pension and postretirement benefit adjustments | 126 | 1 | 137 | 2 |
Total other comprehensive (loss) income, net of tax | 135 | 13 | 134 | (23) |
Comprehensive income | 231 | 115 | 255 | 166 |
Less: Total comprehensive income attributable to noncontrolling interests | 3 | 3 | 6 | 5 |
Total comprehensive income attributable to Clorox | $ 228 | $ 112 | $ 249 | $ 161 |
STOCKHOLDERS' EQUITY (Schedule
STOCKHOLDERS' EQUITY (Schedule of Equity) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | $ 131 | $ 496 | $ 388 | $ 729 |
Beginning balance, common stock (in shares) | 123,820,022 | |||
Beginning balance, treasury stock (in shares) | (6,921,439) | |||
Net earnings (losses) | 96 | 102 | $ 121 | 189 |
Other comprehensive (loss) income | 135 | 13 | 134 | (23) |
Dividends to Clorox stockholders | (150) | (147) | (450) | (440) |
Dividends to noncontrolling interests | (6) | (3) | (9) | (8) |
Stock-based compensation | 16 | 21 | 29 | 31 |
Other employee stock plan activities | (4) | 9 | 5 | 13 |
Ending balance | $ 218 | $ 491 | $ 218 | $ 491 |
Ending balance, common stock (in shares) | 124,080,634 | 124,080,634 | ||
Ending balance, treasury stock (in shares) | (6,660,827) | (6,660,827) | ||
Dividends declared per share (in dollars per share) | $ 1.20 | $ 1.18 | $ 3.60 | $ 3.54 |
Common stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | $ 131 | $ 131 | $ 131 | $ 131 |
Beginning balance, common stock (in shares) | 130,741,000 | 130,741,000 | 130,741,000 | 130,741,000 |
Ending balance | $ 131 | $ 131 | $ 131 | $ 131 |
Ending balance, common stock (in shares) | 130,741,000 | 130,741,000 | 130,741,000 | 130,741,000 |
Additional paid-in capital | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | $ 1,246 | $ 1,193 | $ 1,245 | $ 1,202 |
Stock-based compensation | 16 | 21 | 29 | 31 |
Other employee stock plan activities | (17) | (7) | (29) | (26) |
Ending balance | 1,245 | 1,207 | 1,245 | 1,207 |
Retained earnings | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | 299 | 832 | 583 | 1,048 |
Net earnings (losses) | 93 | 99 | 115 | 184 |
Dividends to Clorox stockholders | (150) | (147) | (450) | (440) |
Other employee stock plan activities | (1) | (2) | (7) | (10) |
Ending balance | 241 | 782 | 241 | 782 |
Treasury stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | $ (1,219) | $ (1,315) | $ (1,246) | $ (1,346) |
Beginning balance, treasury stock (in shares) | (6,740,000) | (7,385,000) | (6,921,000) | (7,589,000) |
Other employee stock plan activities | $ 14 | $ 18 | $ 41 | $ 49 |
Other employee stock plan activities (in shares) | 79,000 | 122,000 | 260,000 | 326,000 |
Ending balance | $ (1,205) | $ (1,297) | $ (1,205) | $ (1,297) |
Ending balance, treasury stock (in shares) | (6,661,000) | (7,263,000) | (6,661,000) | (7,263,000) |
Accumulated other comprehensive net (loss) income | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | $ (494) | $ (515) | $ (493) | $ (479) |
Other comprehensive (loss) income | 135 | 13 | 134 | (23) |
Ending balance | (359) | (502) | (359) | (502) |
Noncontrolling interests | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | 168 | 170 | 168 | 173 |
Net earnings (losses) | 3 | 3 | 6 | 5 |
Dividends to noncontrolling interests | (6) | (3) | (9) | (8) |
Ending balance | $ 165 | $ 170 | $ 165 | $ 170 |
STOCKHOLDERS' EQUITY (Schedul_2
STOCKHOLDERS' EQUITY (Schedule of Changes in Accumulated Other Comprehensive Net (Losses)) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance, beginning | $ 220 | |||
Total other comprehensive (loss) income, net of tax | $ 135 | $ 13 | 134 | $ (23) |
Balance, ending | 53 | 53 | ||
Accumulated other comprehensive net (loss) income | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance, beginning | (494) | (515) | (493) | (479) |
Other comprehensive (loss) income before reclassifications | 4 | 18 | 4 | (13) |
Amounts reclassified from Accumulated other comprehensive net (loss) income | 169 | (4) | 171 | (11) |
Income tax benefit (expense), and other | (38) | (1) | (41) | 1 |
Total other comprehensive (loss) income, net of tax | 135 | 13 | 134 | (23) |
Balance, ending | (359) | (502) | (359) | (502) |
Foreign currency translation adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance, beginning | (456) | (477) | (445) | (448) |
Other comprehensive (loss) income before reclassifications | 17 | 18 | 6 | (11) |
Amounts reclassified from Accumulated other comprehensive net (loss) income | 0 | 0 | 0 | 0 |
Income tax benefit (expense), and other | 0 | 0 | 0 | 0 |
Total other comprehensive (loss) income, net of tax | 17 | 18 | 6 | (11) |
Balance, ending | (439) | (459) | (439) | (459) |
Net unrealized gains (losses) on derivatives | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance, beginning | 98 | 113 | 99 | 121 |
Other comprehensive (loss) income before reclassifications | (6) | 0 | (6) | (2) |
Amounts reclassified from Accumulated other comprehensive net (loss) income | (3) | (6) | (4) | (14) |
Income tax benefit (expense), and other | 1 | 0 | 1 | 2 |
Total other comprehensive (loss) income, net of tax | (8) | (6) | (9) | (14) |
Balance, ending | 90 | 107 | 90 | 107 |
Pension and postretirement benefit adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance, beginning | (136) | (151) | (147) | (152) |
Other comprehensive (loss) income before reclassifications | (7) | 0 | 4 | 0 |
Amounts reclassified from Accumulated other comprehensive net (loss) income | 172 | 2 | 175 | 3 |
Income tax benefit (expense), and other | (39) | (1) | (42) | (1) |
Total other comprehensive (loss) income, net of tax | 126 | 1 | 137 | 2 |
Balance, ending | $ (10) | $ (150) | $ (10) | $ (150) |
EMPLOYEE BENEFIT PLANS (Narrati
EMPLOYEE BENEFIT PLANS (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
One-time noncash settlement charge, net of curtailment gain | $ 171 | $ 0 | $ 171 | $ 0 |
Net periodic benefit cost | 5 | 4 | 10 | 8 |
Retirement Income Plans | UNITED STATES | Other Postretirement Benefits Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
One-time noncash settlement charge, net of curtailment gain | 171 | |||
One-time noncash settlement charge, net of curtailment gain, after tax | 130 | |||
Net periodic benefit cost | 176 | 4 | 181 | 8 |
Retirement plan contributions | 2 | 2 | 4 | 4 |
Retirement Health Care | Postretirement Health Coverage | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic benefit cost | $ 0 | $ 0 | $ 0 | $ 0 |
EMPLOYEE BENEFIT PLANS (Compone
EMPLOYEE BENEFIT PLANS (Components of the Net Cost of Retirement Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Total | $ 5 | $ 4 | $ 10 | $ 8 |
Other Postretirement Benefits Plan | Retirement Income Plans | UNITED STATES | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | 3 | 4 | 8 | 9 |
Expected return on plan assets | 1 | (2) | (2) | (5) |
Amortization of unrecognized items | 1 | 2 | 3 | 4 |
Curtailment gain | (6) | 0 | (6) | 0 |
Settlement loss | 177 | 0 | 178 | 0 |
Total | $ 176 | $ 4 | $ 181 | $ 8 |
Weighted average long-term expected rate or return on plan assets (percentage) | 3.30% |
OTHER CONTINGENCIES AND GUARA_2
OTHER CONTINGENCIES AND GUARANTEES (Details) - USD ($) $ in Millions | 6 Months Ended | |
Dec. 31, 2023 | Jun. 30, 2023 | |
Loss Contingencies [Line Items] | ||
Liability for aggregate future remediation costs | $ 28 | $ 28 |
Letters of credit | 17 | |
Letters of credit, amount outstanding | 0 | |
Alameda County, California Matter | ||
Loss Contingencies [Line Items] | ||
Liability for aggregate future remediation costs | $ 12 | 12 |
Remediation period (in years) | 30 years | |
Maximum undiscounted costs | $ 28 | |
Dickinson County, Michigan Matter | ||
Loss Contingencies [Line Items] | ||
Liability for aggregate future remediation costs | $ 10 | $ 10 |
Remediation period (in years) | 30 years | |
Percentage of liability for aggregate remediation and associated costs, other than legal fees | 24.30% |
SEGMENT RESULTS (Narrative) (De
SEGMENT RESULTS (Narrative) (Details) - reportableSegment | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Concentration Risk [Line Items] | ||||
Number of reportable segments | 4 | |||
Revenue from Contract with Customer | Customer Concentration Risk | Walmart Stores, Inc. | ||||
Concentration Risk [Line Items] | ||||
Concentration percentage | 23% | 25% | 25% | 26% |
SEGMENT RESULTS (Reportable Seg
SEGMENT RESULTS (Reportable Segment Information ) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | 18 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2023 | Dec. 31, 2023 | |
Segment Reporting Information [Line Items] | ||||||
Net sales | $ 1,990 | $ 1,715 | $ 3,376 | $ 3,455 | ||
Interest income | 7 | 3 | 17 | 5 | ||
Interest expense | (26) | (23) | (47) | (45) | ||
Pension settlement charge | (171) | 0 | (171) | 0 | ||
Cyberattack costs | (25) | 0 | (49) | 0 | ||
Streamlined operating model | (3) | (4) | (3) | (23) | $ (60) | $ (63) |
Digital capabilities and productivity enhancements investment | (32) | (25) | (59) | (45) | ||
Earnings before income taxes | $ 136 | $ 130 | $ 165 | $ 246 | ||
Cyberattack | Product Concentration Risk | ||||||
Segment Reporting Information [Line Items] | ||||||
Concentration percentage | 100% | 100% | ||||
Restructuring and Related Costs | Product Concentration Risk | Employee-Related Costs | ||||||
Segment Reporting Information [Line Items] | ||||||
Concentration percentage | 100% | 100% | 100% | 100% | 100% | |
Operating Segments | Health and Wellness | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | $ 720 | $ 577 | $ 1,224 | $ 1,234 | ||
Segment adjusted EBIT | $ 259 | $ 124 | $ 363 | $ 257 | ||
Operating Segments | Health and Wellness | Cyberattack | Product Concentration Risk | ||||||
Segment Reporting Information [Line Items] | ||||||
Concentration percentage | 9% | 15% | ||||
Operating Segments | Health and Wellness | Restructuring and Related Costs | Product Concentration Risk | Employee-Related Costs | ||||||
Segment Reporting Information [Line Items] | ||||||
Concentration percentage | 0% | 0% | 0% | 5% | 6% | |
Operating Segments | Household | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | $ 502 | $ 462 | $ 827 | $ 885 | ||
Segment adjusted EBIT | $ 92 | $ 44 | $ 88 | $ 66 | ||
Operating Segments | Household | Cyberattack | Product Concentration Risk | ||||||
Segment Reporting Information [Line Items] | ||||||
Concentration percentage | 11% | 11% | ||||
Operating Segments | Household | Restructuring and Related Costs | Product Concentration Risk | Employee-Related Costs | ||||||
Segment Reporting Information [Line Items] | ||||||
Concentration percentage | 0% | 0% | 0% | 0% | 1% | |
Operating Segments | Lifestyle | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | $ 403 | $ 332 | $ 632 | $ 652 | ||
Segment adjusted EBIT | $ 109 | $ 74 | $ 128 | $ 134 | ||
Operating Segments | Lifestyle | Cyberattack | Product Concentration Risk | ||||||
Segment Reporting Information [Line Items] | ||||||
Concentration percentage | 12% | 13% | ||||
Operating Segments | Lifestyle | Restructuring and Related Costs | Product Concentration Risk | Employee-Related Costs | ||||||
Segment Reporting Information [Line Items] | ||||||
Concentration percentage | 0% | 0% | 0% | 5% | 3% | |
Operating Segments | International | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | $ 311 | $ 286 | $ 581 | $ 571 | ||
Segment adjusted EBIT | $ 32 | $ 24 | $ 66 | $ 47 | ||
Operating Segments | International | Cyberattack | Product Concentration Risk | ||||||
Segment Reporting Information [Line Items] | ||||||
Concentration percentage | 7% | 4% | ||||
Operating Segments | International | Restructuring and Related Costs | Product Concentration Risk | Employee-Related Costs | ||||||
Segment Reporting Information [Line Items] | ||||||
Concentration percentage | 0% | 0% | 0% | 16% | 15% | |
Corporate and Other | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | $ 54 | $ 58 | $ 112 | $ 113 | ||
Segment adjusted EBIT | $ (106) | $ (87) | $ (168) | $ (150) | ||
Corporate and Other | Cyberattack | Product Concentration Risk | ||||||
Segment Reporting Information [Line Items] | ||||||
Concentration percentage | 61% | 57% | ||||
Corporate and Other | Restructuring and Related Costs | Product Concentration Risk | Employee-Related Costs | ||||||
Segment Reporting Information [Line Items] | ||||||
Concentration percentage | 100% | 100% | 100% | 74% | 75% | |
Operating Segments and Corporate and Other | ||||||
Segment Reporting Information [Line Items] | ||||||
Segment adjusted EBIT | $ 386 | $ 179 | $ 477 | $ 354 |
SEGMENT RESULTS (Net Sales Perc
SEGMENT RESULTS (Net Sales Percentages) (Details) - Revenue from Contract with Customer - Product Concentration Risk | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 100% | 100% | 100% | 100% |
Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 3% | 3% | 4% | 3% |
Health and Wellness | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 36% | 34% | 36% | 36% |
Health and Wellness | Cleaning | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 31% | 29% | 31% | 31% |
Health and Wellness | Professional Products | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 5% | 5% | 5% | 5% |
Household | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 25% | 27% | 24% | 26% |
Household | Bags and Wraps | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 12% | 14% | 11% | 13% |
Household | Cat Litter | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 9% | 9% | 9% | 9% |
Household | Grilling | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 4% | 4% | 4% | 4% |
Lifestyle | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 20% | 19% | 19% | 18% |
Lifestyle | Food | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 11% | 10% | 10% | 10% |
Lifestyle | Natural Personal Care | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 5% | 5% | 4% | 4% |
Lifestyle | Water Filtration | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 4% | 4% | 5% | 4% |
International | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 16% | 17% | 17% | 17% |